Business Simulation, Individual Commitment in the Group - Essay Example

Business Simulation Student’s Name Course Instructor Date Introductory Part of the Report This report provides a reflection of the performance of our company as it relates to the business the company is involved in. The information contained in this report is purely based on strengths and weaknesses of our company. Based on the purpose of which this report has been written, some information may not be extensively covered. It is good to clarify that in an event of such kind, the necessary documentary materials shall be availed at your requisition. This company has not been in operation for a long time. This explains the reason some analysis in terms of historical information is limited to just a few months in the past. This is not meant to hint at the possibility that the company does not have the required capacity to raise and manage the finances it plans to raise. This is to let you know that regardless of the short period we have been in operation, the financial statements and projections indicate that the company is headed for greatness. Therefore, if our application for the loan is approved, we assure you that this company has the required resources to ensure that every part of the agreement is complied with. Analysis of the Company As earlier on noted, in spite of the fact that this company has been trading for a short period, the company has a huge potential in terms of its financial capabilities. This section is reserved for showcasing the strengths of this company. Sales Volume: The trend in sales volume of the company has been rising for the period of 24 months. For the first year, the sales volume grew from 410 to 10,800. This growth in sales volume represents over 2534 percentage increase. This is a huge increase considering the fact that this is a new company. This is an indication that the potential of the company is great. The company had to overcome a lot of challenges that face new businesses to achieve these results. Some of these challenges include excess fixed costs during the first year of trading. Regardless of all these, the company has managed to overcome all these challenges to attain this sales volume. No of Orders: Another indicator of the company’s economic strength is the number of orders demanded over the period. The growth in demand in number of orders indicates that the company has managed to meet the expectations of consumers of its products. In January, the company had only 3 orders for the entire month. At the end of the year, the company recorded 25 orders. This is quite encouraging considering that this is a new company. This represents a 700 percentage increase for a period of just 12 months. If this trend is something to go by, the company has the ability to perform even better than this in the future. The increase in the number of orders over the period is a depiction of excellent strategic leadership of the company. Net Profits: This is also another indicator of the company’s financial capacity. The net profit figure is an expression of the management’s ability to cut down costs as much as possible while at the same time increase sales volume as much as possible. In January 2013, the company recorded net loss of 364. At the end of the year, the company had managed to turn around the loss recorded in January into a net profit of 1770. This is very overwhelming. This increase in net profit represents an overall increase of over 594 per cent. A look at the second year of trading indicates that the net profit increased from 1770 to 2223. This represents almost 40 per cent increase in net profit. This shows that the company has managed to reduce the level of spending while exploiting avenues for increasing the sales volume. The reason the company recorded a net loss at the beginning of the year in 2013 is because of the excess fixed costs. Cash flow: The cash flow indicates the company’s liquidity status. A more liquid company has the capability to meet its operational needs throughout the period. A look at the trend of cash flows of the two years indicates that the company has a strong cash management program. The cash management program is responsible for designing credit policies and other cash utilization policies for the benefit of the company. In February 2013, the projection of the company in terms of cash withholdings stood at a deficit. That means the company is spending more than it is receiving cash. This was much far below the January standing which was at 9676. The reason this figure stood high is because of the cash carried forward. Regardless of the low deficit figures in February, the company has a positive value at the end of the year. The projected increase cash flows is very encouraging. Basic Projections for 6 Months Using the performance that we have used in this analysis, almost every aspect portrays a positive trend. Most sectors of this company reflect the efficiency and effectiveness in most of its operations. On an overall scale, the future of this company is very promising. The prospects of the company are very overwhelming. In projecting the performance of the company for the next six months, the trends that have been realized already are very critical. First, the sales volume is expected to increase. The variations during the two years indicate that the sales volume has been increasing. One notable thing about the trend in sales volume shows that the sales increased by 2534% during the first year. During the second year of trading the increase in sales volume was by a smaller margin of less than 10%. This is explained by the increase in competition and elimination of any monopolistic advantage. Therefore, during the next 6 months, the sales volume is expected to increase at a rate lower than 10%. This is due to the expected stiff competition. At the same time, the percentage increase in net profit is also expected to reduce proportionately. On the cash flow index, they have increased at a lower rate during the second year of trading. Therefore, just like the sales volume, the cash flow is expected to increase at a slower pace. Nevertheless, the rate is expected to be above 10% based on the fact that fixed assets are reducing. Activity III Group work experience Working in groups is always challenging to the extent of the behaviour exhibited by the members of the group. This team was not that exceptional from all these issues that affect group performance. The group had its share of challenges as well as good times. Nevertheless, the fact that the group was successful shows that the team managed to overcome its challenges. Some of the disagreements that we experienced in the group emanated from setting some estimations and approximations. The projections of the various performances were quite a challenge. This kind of challenge characterizes almost all types of activities involving simulation. The good side of all these is the excellent leadership that was provided by our “managing director”. The combined efforts that we invested in the objectives of this group have been manifested through the results. The synergy that was unleashed in the working of this group is greatly attributed to the individual competencies of each member. Brainstorming strategy has been used extensively in mobilizing the various ideas of the group. This yielded a lot of benefits to the entire team throughout the discussion. With everybody being on a level platform, it was easy for members to make their contributions in the group. Individual Commitment in the Group The work that was being undertaken in the group was truly demanding. Assignments of the nature of forecasting require maximum attention at all times. Therefore, personal commitment to the objectives of the group is mandatory. Throughout the period, different roles were accorded to individual members. I had my own roles that I was expected by our “managing director” to accomplish. These tasks that were being given to individual members were being issued with strict datelines. Due to this, I had to be fully committed in order to ensure I do not derail the progress of the group. I remember there were occasions when I forced to forego some meals only to catch up with some responsibilities in the group. When I now analyse the success that was achieved in the group, it is easier to realize that it all came with such sacrifices. The time for meeting was scheduled for mostly afternoons. At these sessions, it was only aimed at making presentations on the various progresses on the tasks that we had been issued by the group leader. During these presentations, the presenters were asked question in order to ascertain that the information presented fully meets the required standards. Any time individuals failed to meet the required standards, the presenters were requested by the group “managing director” to review their work before presenting again. This process ensured that the entire exercise was undertaken with high degree of professionalism. One thing that seemed to impress in the group progress is the manner in which members decided to respond to complains about their performance. They showed high levels of professionalism. References Gilliland, M 2010, the Business Forecasting, Wiley, New Jersey, p. 13. Hanke, J. & Wichern, D 2008, Business Forecasting, Prentice Hall, New York, p. 45-54. Laguna, M. & Marklund, P 2004, Business Process Modelling, Simulation and Design, Wiley, New Jersey, p112-131. Smith, J. & Golden, P 2002, Corporation: A Global Business Simulation, Prentice Hall, New York, p. 23-76. Read More